Canada Fibers, Enviroplast sign supply deal

Anjou, Quebec-based Enviroplast and Toronto-based Canada Fibers Ltd. (CFL) have entered into a supply agreement designed to strengthen markets for plastic film scrap in Canada.

Under the agreement, CFL, a recycler with several material recovery facility (MRF) locations in Canada, will supply Enviroplast’s new facility in Vaughan, Ontario, with plastic film scrap.

The new facility in Vaughan will have a production capacity of 20,000 metric tons of recycled-content LLDPE (linear low-density polyethylene), LDPE (low-density polyethylene) and HDPE (high-density polyethylene) pellets. Initially, as the plant ramps up, it will produce between 7,500 and 10,000 metric tons.

CFL already has begun supplying Enviroplast’s Vaughan facility in preparation for its opening, which is expected to occur in the second or third quarter of 2019. Enviroplast, which was acquired by private equity firm Aliston in 2016, has an original facility is in the Montreal area.

“Between the two Enviroplast facilities, this domestic market revolution allows for the recycling of up to 15,000 metric tons annually of plastic film a year following an investment of CA$25 million ($18.6 million),” says Mathieu Séguin, CEO of Enviroplast. “With CFL being able to provide us a clean and pure stream of plastic film, we are able to produce a high-quality LDPE pellet to meet growing demand for pure, sustainable, recycled raw material.”

The company expects to take in between 7,500 and 10,000 metric tons of plastic scrap the first year and grow from there, Séguin adds. While Enviroplast will start with accepting LDPE, “We have a few projects [involving] HDPE and PP (polypropylene), but they will come later,” Séguin says.

Mark Badger, CFL’s executive vice president, says “CFL’s and Enviroplast’s significant investments in leading edge recovery and recycling technology will drive expansion of the domestic market for the recycling of plastic film. CFL’s continuous investment in innovative sorting technologies enables recovery of superior quality, clean streams of plastic film that meet the high standards of Enviroplast’s LDPE pellet production requirements.”

The Enviroplast plant also will be equipped with an integrated extrusion system with a sorting line and a wash line. The wash line is using a closed loop water system. “We have a dedicated water treatment plant on site to handle all kinds of contaminants,” Seguin comments.

In addition to CFL, Enviroplast has another agreement with an agricultural plastic collector to process different types of agricultural film, according to Séguin. “Our goal is to develop and create circular economies. We do process single use plastic, but our focus is to always reintegrate the polymers in the supply chain,” he says.